Ethnic and western snacks maker Gopal Snacks was yet another stock that impacted due to recent turmoil in the equity markets, on its debut day, i.e. March 14. JG Chemicals on its listing day plunged 16.4 percent on March 13, though it rebounded 6.5 percent on Thursday.
The complete offer-for-sale issue as well as lower IPO subscription numbers compared to other public issues may be other reasons for weakness in stock price.
Gopal Snacks opened with a 12.5 percent loss at Rs 351 against issue price of Rs 401 on the NSE, and remained below the issue price throughout session.
It touched an intraday low of Rs 341.8 and high of Rs 384.8, before closing the session at Rs 362.7, down 9.55 percent with volume of 84.63 lakh equity shares and market capitalisation of Rs 4,519 crore.
On the BSE, Gopal Snacks shares dropped 10.21 percent to Rs 360.05, with volume of 5.47 lakh equity shares.
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The Rajkot-based company that makes a variety of snack products including namkeen, gathiya, wafers, extruded snacks, and snack pellets, has raised Rs 650 crore through its initial public offering which was subscribed 9.02 times during March 6-March 11.
The price band for the public issue, which comprised of only offer-for-sale by the existing shareholders, was Rs 381-401 per share.
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